Just recently, there have been numerous "bullishly biased" analysts and bloggers discussing the turn up in the monthly MACD indicators as a "sure sign" the bull market rally is set to continue.
While "bullish buy signals" on any long-term indicator is indeed a positive sign, there are a few "warning labels" which must also be considered. For example:
- Since these are monthly indicators, the signal is only valid at the end of the month. Mid-month signals can be reversed by sharp price movements.
- No one signal provides any "certainty" about future market outcomes.
- Time frames